What is the bid-ask spread in dollars

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1. If you sell a 6 percent bond to a dealer when the market rate is 7 percent, which one of the following prices will you receive?

A) Bid price.

B) Call price.

C) Bid-ask spread.

D) Par value.

E) Asked price.

2. A Treasury bond is quoted as 99.6325 asked and 99.1250 bid. What is the bid-ask spread in dollars on a $5,000 face value bond?

A) $17.500

B) $.675

C) $16.250

D) $.508

E) $25.375

Reference no: EM131487607

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